The following article regarding regional bunker fuel availability outlook for the East of Suez region has been provided by online marine fuels procurement platform ENGINE for publication on Singapore bunkering publication Manifold Times:

• VLSFO and HSFO availability improves in Singapore
• Low demand in Japanese ports
• Prompt supply is tight in Fujairah and Khor Fakkan

Singapore and Malaysia

In Singapore, most suppliers now indicate lead times of up to nine days for VLSFO, although some can manage deliveries within as little as four days. This represents a significant improvement compared to the previous week, when traders suggested longer lead times ranging between 7-17 days.

HSFO supply has also improved in the port, with lead times decreasing from last week’s 8-10 days to 4-7 days. For LSMGO, lead times remain relatively stable, ranging between 2-4 days – similar to last week.

Singapore’s residual fuel oil stocks have averaged 12% higher so far this month compared to May, Enterprise Singapore’s latest data shows. Despite a 53% decline in the port’s net fuel imports this month, fuel oil stocks in Singapore have risen above 20 million barrels. Both fuel oil imports and exports have decreased, with imports falling by a substantial 2.27 million bbls, while exports declined by a more modest 177,000 bbls.

The port’s middle distillate stocks have declined by 11% this month and are at their lowest since February.

In Malaysia’s Port Klang, VLSFO and LSMGO grades are readily available, and certain suppliers can offer prompt deliveries for smaller parcel sizes. However, HSFO remains scarce at the port.

East Asia

VLSFO and LSMGO supply in Zhoushan remains strong, with short lead times of 2-5 days, virtually unchanged from last week. However, HSFO availability in Zhoushan remains tight as most suppliers are running low on stocks. Most suppliers are recommending lead times of 7-10 days for this grade.

In Northern China, both VLSFO and LSMGO grades are available at Dalian port. Similarly, these grades are readily available in Qingdao and Tianjin, although HSFO supply is limited in these ports. In Shanghai, VLSFO and LSMGO availability remains good, while HSFO supply is scarce. In Fuzhou and Xiamen, VLSFO and LSMGO grades are readily available. Conversely, in Guangzhou and Yangpu, prompt availability of both low sulphur fuel grades is restricted.

In the Taiwanese ports of Hualien, Kaohsiung, Taichung, and Keelung, both VLSFO and LSMGO grades remain readily available, with short lead times of 2-4 days, consistent with last week.

In Hong Kong, availability of all bunker fuel grades remains good. Most suppliers recommend lead times of 3-5 days, down from about seven days last week.

In South Korea, bunker demand has been picking up. All bunker fuel grades are available in South Korean ports, with most suppliers recommending lead times of 6-8 days, virtually unchanged from last week. Strong winds and high waves could potentially affect bunker operations at the South Korean ports of Ulsan, Onsan, Busan, Daesan, Taean, and Yeosu between Friday and Sunday.

In Japan, bunker demand continues to be sluggish due to high bunker prices. Tokyo’s VLSFO was priced $44/mt higher than Singapore’s and $57/mt higher than Zhoushan’s VLSFO on Tuesday. Lead times vary across key Japanese ports: around five days in Osaka, Kobe, Nagoya, and Yokkaichi; approximately seven days in Tokyo and Chiba; and longer periods of 9-15 days in Mizushima and Oita.

The port of Hai Phong in Vietnam is bracing for inclement weather on Friday and Saturday, which is expected to complicate bunkering there.

Oceania

In Western Australia, VLSFO and LSMGO are available in the ports of Kwinana, Fremantle, and Kembla, with typical lead times of 7-8 days.

In New South Wales, Sydney has readily available LSMGO, while HSFO is mostly available upon inquiry. In Victoria, both Melbourne and Geelong offer good availability of VLSFO and LSMGO, though prompt HSFO supply can be limited.

In Queensland, Brisbane and Gladstone maintain sufficient stocks of VLSFO and LSMGO, with lead times of 7-8 days, but HSFO availability is constrained in Brisbane.

In New Zealand, Tauranga and Auckland have ample VLSFO supply, and LSMGO supply is decent in Auckland. However, adverse weather conditions are forecast between Tuesday and Wednesday, which may impact bunker operations.

South Asia

In several Indian ports, including Kandla, Tuticorin, Chennai, Cochin, Visakhapatnam, and Haldia, VLSFO and LSMGO availability has been restricted due to supply shortages.

Adverse weather conditions are predicted in Mumbai and Visakhapatnam ports in India on Wednesday and Saturday, respectively, potentially disrupting bunker operations.

Bad weather is also forecast in Sri Lanka’s Colombo on Wednesday and Thursday, which might affect bunker deliveries.

Middle East

Despite low bunker demand, prompt availability of all grades continues to be limited in Fujairah, with most suppliers requiring lead times of 5-7 days, consistent with last week.

A similar situation exists in the UAE port of Khor Fakkan, where several suppliers are recommending lead times of 5-7 days.

In Saudi Arabia’s Jeddah port, there is an abundant supply of VLSFO and LSMGO, while VLSFO is tight in nearby Djibouti. LSMGO is more readily available in Djibouti.

In Iraq’s Basrah, VLSFO and LSMGO are readily available, but both grades are tight in Ras Laffan, Qatar.

LSMGO is readily available in the Omani ports of Sohar, Salalah, Muscat, and Duqm.

By Tuhin Roy

Photo credit and source: ENGINE
Published: 26 June 2024